Do you think a 75% or 100% mark of cost is good for craft prices?

Question

I have a craft show coming up and a chance to add my crafts to a webpage but need a price list. I am so stuck on the mark up % to add.

Answer 1

Figure out what a 100% mark up would be, then price out like goods and see if your prices are somewhat reasonable.

I used to think a 100% markup was so aweful, but, in the market place...especially in my industry I have seen much, more than a 100% markup...it mostly depends on what people will pay. You can offer a wonder craft for 50 cents but, if people won't pay that then it may be overpriced.

It pays to do research.

Answer 2

Hi there! I have been making and selling crafts for many years now. The rule I go by is 1 1/2 times the cost of materials. If you bought the materials on sale, you still price on what the regular price would be. You still have to feel comfortable about the price you put on, though.

I also was told by some veteran crafters that you set a price, and never sell for less, as this is your lively hood. Would a person working for a company take only a percentage of salary because the owner wanted a break? NO!

I suggest you look at completed lisitngs on Ebay. Also at listings on Etsy.com.

One other thing - Some people will really sell their creations for nothing. Some overprice. You need to be somewhere inbetween. And, to top it off, sometimes things sell like wildfire and sometimes it is miserable. Be proud of what you make. You spent the most valuable commodity you have on those projects - YOUR TIME! Never undervalue yourself.

When selling, set an attractive table, do not put everything out at once..And be friendly and smile, say hi! Also, take time to socialize with fellow craft vendors - You learn a lot that way. Ask for a critique. Most vendors are very honest, and friendly, willing to share.

Oh, and some will always pick up an item, check it out and put it back (and say I can make it). Some will tell you they buy one for a prototype. I think all crafters do that. at least I do.

As far as competeing with China,Walmart. We are, but right now LEAD is in the news! Make sure to remind people it is Made in America! Your product is NOT massed produced.

Good luck.

Answer 3

What I have been told through the years is 3 times cost as a minimum OR figure out how much time you have in it, how much you should make per hour, minute, etc and add one and a half times the cost. SO,
say you want $10/hr and you have 3 hours work and the supplies were $5. Then you would add
$30 plus $7.50 and your price would be $37.50.
Too many of us literally are giving away our crafts, our time and the supplies because we underprice. For example, I know there has been pictures of a heirloom baby afghan on the internet that is available to purchase for $25. I have made that very afghan. I found it challenging. Just charging 100% of supplies(cost) still was undercharging because I know how much the yarn costs for that particular afghan. Personally, there is no way I will sell my baby afghan made from that pattern for less than a minimum of $100. So, don't undercharge!

Answer 4

We work inbetween those two percentages. We think of it like this, price it at 100% and then ask 5 people if they would buy that product at that price. If yes keep it, if no, go to 75%. We also never go over $30 on a price for a craft, people just won't pay it. Plus, you'll know if the item is too expensive. Also, price similar items on Ebay and see how much they're going for, that's a great way to find out what real people are paying.

Answer 5

It's so hard to say.

I knit. I watch a ton of TV, mostly sports and anime on DVDs, and I learned to knit for something to do and justify all of my *** time sitting there watching cartoons and sports.

I made some things for friends of mine, and for the most part they didn't cost me much at all.

The most expensive things I made was 2 scarfs for the president and the VP of the small company I work for who are Iowa State Cyclones boosters and have company bought tickets to games. Pretty much every year I get a pair of tickets and me and my father go to the game. Face value on each is over $30, and the wool I bought for each one cost about the same. Sounds like I still got the better end of the deal.

Then I heard about what scarfs exactly like the two I had made were selling for on the internet and at craft fairs. No BS, over $100 each. I am sitting there thinking to myself, "I was Full Metal Panic!, Gantz, Planetes, Wolf's Rain, and Battlestar Galactica when I was making these 2 scarfs. Where does the extra $70 come from?"

Depending on what you are making, 100% markup may be CHEAP. For example, those 2 scarfs, I could have VERY easily sold for $60 each. "What? You are HIGH!!!" some are saying.
#1, they are 100% wool
#2, they are the colors of the local university team, Iowa State
#3, they are knit as a tube, not flat. They are double thick, but very, very soft.
Turns out, $60 would be a steal.

I think the moral of the story is at first, go with what you think is REASONABLE. For example, did you do what you wanted while you made them? Like I said for me, I was watching DVDs. I don't concider that work. I concider knitting while watching DVDs not wasting your time. Double the value of what I spent in materials would not only allow me to do it all over again, but watch even MORE DVDs, and even some sports. Don't get greedy, but go up from reasonable for you versus what the market will pay.

Answer 6

I have always been told 3 times what it cost to make. I think 100% is too much. Think about if you were the consumer of your product. What would you consider paying for the product? If you think it the cost is higher than what you would pay it probably would be for someone else as well.

Answer 7

I personally think that 75% or 100% markup is outragous. Most do it. That is why we are competing with China in most popular crafts...we are pricing ourselves out of business.

Happened to me in the stained glass business. Can't compete with them on that, but I can still do custom work.

Just my opinion.

Answer 8

I do 3 times the cost of materials, plus $10..00 an hour, and then a premium for creativity, based on supply and demand.

For example, if my widget is the best one out there, then I price mine one-and-a-quarter times higher than the second best one out there.

But you have to be honest with yourself. If it's not the best (yet), don't add a premium.
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